Colorado Economic and Fiscal Outlook September 20, 2019 Lauren Larson - Director Luke Teater – Deputy Director
The forecast was revised slightly downward from June 2
General Fund Revenue Forecast 3
Forecast Revisions ● Corporate income tax -- small downward revision to last year’s collections ● Slightly lower cash fund revenue this summer ● Economic risks increased this quarter -- not in revisions but watching closely 4
Consumer spending is supporting continued economic expansion 5
Production vs. Consumption Indicators 6
Leading economic indicators suggest continued expansion, but at a slower rate 7
Leading Economic Indicators 8
This forecast is conservative and comparable to independent benchmarks 9
Benchmarks 10
Budget capacity is limited by the TABOR cap 11
FY21 Budget Implications -Revenue is above the TABOR cap, limiting budget growth. -This means less available in new funds for next year’s budget (FY 2020-21) compared with prior two years. -Although last year’s topline growth also was limited by TABOR, the net new money available was much higher due in part to the local share for school finance being stronger. -This took an expenditure off our books and freed up more than $350 million in the FY 2019-20 budget. 12
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